20 Pa.C.S. Ch. 28

in effect

20 Pa.C.S. § 2801 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Formula clause." A clause that has any of the following characteristics: (1) Refers to the unified credit, estate tax exemption, applicable exemption amount, applicable credit amount, applicable exclusion amount, generation-skipping transfer tax exemption, GST exemption, marital deduction, maximum marital deduction, unlimited marital deduction or charitable deduction, or other words relating to Federal tax exemptions, exclusions, deductions or credits where the meaning of the words is dependent on the current state of the Federal tax laws. (2) Measures a share of an estate or trust based on the amount that can pass free of Federal estate taxes or affects the inclusion ratio for generation-skipping transfer tax purposes. (3) Is based on a similar provision of Federal estate tax or generation-skipping transfer tax law. "Other dispositive instrument." Includes the following: (1) A beneficiary designation pertaining to insurance or retirement assets. (2) An instrument that exercises a power of appointment held by the decedent at death. (3) A similar instrument that: (i) expresses a decedent's intent regarding assets over which the decedent had dispositive authority at death; or (ii) otherwise disposes of assets as a result of the decedent's death.

20 Pa.C.S. § 2802 Interpretation of formula clauses.

(a) General rule.--Except as provided in subsection (b) and subject to section 2803 (relating to judicial proceeding), a will, trust or other dispositive instrument of a decedent who dies after December 31, 2009, and before January 1, 2011, that contains a formula clause shall be rebuttably presumed to be interpreted pursuant to the Federal estate tax and generation-skipping transfer tax laws applicable to estates of decedents dying on December 31, 2009. (b) Exception.-- (1) Subsection (a) shall not apply with respect to a will, trust or other dispositive instrument that: (i) is executed or amended after December 31, 2009; or (ii) manifests an intent that a contrary rule shall apply if the decedent dies on a date on which there is no applicable Federal estate tax or generation-skipping transfer tax in effect. (2) If the Federal estate tax or generation-skipping transfer tax applies to an estate of a decedent dying or generation-skipping transfer occurring before January 1, 2011, then with respect to each such Federal tax, the initial reference to January 1, 2011, in this section shall refer instead to the first date after December 31, 2009, on which such tax applies to decedents' estates or generation-skipping transfers.

20 Pa.C.S. § 2803 Judicial proceeding.

(a) Standing.--The decedent's personal representative, trustee or any affected beneficiary under the will, trust or other dispositive instrument may bring a proceeding to interpret a formula clause. (b) Commencement.--A proceeding under this section must be commenced within 12 months following the death of the decedent. (c) Considerations.--In a proceeding under this section, the court shall consider all of the following: (1) The provisions and purposes of the will, trust or other dispositive instrument. (2) The facts surrounding the creation of the will, trust or other dispositive instrument. (3) The decedent's known or probable intent, based on all the facts and circumstances surrounding the creation of the will, trust or other dispositive instrument. In determining this intent, the court may consider evidence that contradicts the plain meaning of the will, trust or other dispositive instrument. (4) The identity and interests of beneficiaries of different shares resulting from the application of the formula clause. (d) Modifications.--The court shall have the power to modify a provision of a will, trust or other dispositive instrument in a manner that is not contrary to the decedent's probable intention in order to achieve the decedent's tax and other objectives. (e) Effective date of interpretation or modification.--The court may provide that an interpretation or modification pursuant to this chapter shall be effective as of the decedent's date of death. Cross References. Section 2803 is referred to in section 2802 of this title.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=20Fetched: 10/16/2026